FDI the opportunities of FDI in education sector.

FDI in Higher
education – scope and opportunities.

Anjana G Nair

no: 8589802310

[email protected]



It is
important for foreign investment and experience to flow into the higher
education sector in order to transform the domestic higher education
institutions into the world’s top league.


1991, the Indian government introduced the economic policy to attract foreign
investments and since then, it has amended the policy from time to time in various
sectors to sanction increased levels of foreign participation. As India is a developing country, it requires funding and help
from outside. FDI makes an important contribution to boost economic growth and has
expedited development in a global economy.

is an important sector that requires an overall change and development. While
listing the best educational institutions in the world, we can notice that
India is far behind. In this era of information, nations in the world are
endeavoring to expand the reach of education at every level to build aptitudes,
skills, interests, and opinions of youth as assets of their nation. So, we need
to know the changes transpiring in this sector and endeavor to build technology
based best education system by improving the curriculum with the help of
foreign countries.



To study
about the opportunities of FDI in education sector.

study about the merits, challenges and remedies of FDI in higher education

Review of literature:

allowing 100% FDI in the education sector, there has hardly been any investment
in this sector and the response from foreign investors has been very lukewarm”
– Bhumesh Verma

given the limited support, which government can provide to this sector in terms
of investment, the private sector needs to play a much larger role,” the report
noted.” – Business Line (The Hindu) Newspaper report on 2012 Nov 13


Scope & Opportunities:

v  Improve educational output, i.e. world level education

v  Employability increases

v  Multinational research universities created and benefited to
the nation

v  Outflow of money and human resources reduced



v  Foreign control may increase.

v  Traditional education system changed.

v  Chance of arising of profit oriented educational

v  Foreign Universities not recognized by UGC.

v  The introduction of FDI is a complex activity.

v  Lack of clarity on regulatory framework for academic
collaborations with foreign universities.

v  There is a chance of objection from the part of foreigners
as it is a non-profit sector. They won’t receive any returns from their


v  We should not allow low grade universities to enter into

v  We always think nations welfare and development. Think
nationally, Act Globally

v  Make children aware of India ‘s tradition and culture from
primary classes onwards so they will keep it in mind till their death

v  We cannot contribute when we swim along the flow. But those
who swim in the opposite direction of flow, they can bring drastic changes to
the world. Mahatma Gandhi and Nelson Mandela are such persons who swim opposite
to the flow.

v  We should open the windows of the world towards our youth.



The Government of India has allowed for 100% FDI in the
educational sector under the automatic rule. The introduction of FDI in
education sector not only mean the establishment of prestigious universities
with the good architecture, but additionally denotes that trained human
resources should be present in such universities to train the youth in India

If we did not update our sectors, according to the changes
in the world, we will be obsolete soon. So, we must accept the new trends and
changes transpiring globally. Everything has a positive side and a negative
side. If benefits are more we should neglect small defects or try to surmount


higher education sector. opportunities aplenty, growth unlimited! – Deloitte

manifesto for change: APJ Abdul Kalam and V.Ponraj